International Power sees more demand in Asia and Australia

International Power has shrugged off a 5pc drop in demand for electricity in
Western markets to report pre-tax profits up by 10pc.

By Rowena Mason

6:30AM GMT 10 Mar 2010

Industrial usage in Australia and Asia fuelled this rise for the owner of 45 power stations across the world this year, while demand in the US and Europe lagged because of the continuing recession.

International Power

The £5bn company's share price rose 2.3, or 1pc, to 332p, as it posted pre-tax profits of £1.3bn on flat revenue of £3.6bn.

Analysts are waiting to see whether talks between the company and French utility GDF Suez about a potential takeover will restart.

The companies ended discussions about a possible asset tie-up late last year, but Phil Cox, chief executive of International Power, said the board would always be willing to talk if it could see value for its shareholders.

"At the moment, we're building up our renewables portfolio, mainly in onshore wind, and seeing plenty of other opportunities in the Middle East, North Africa and South East Asia," he said.

International Power, which is unusual among utilities for concentrating on generation without owning natural resources or retail supply businesses, secured financing for a £1bn coal-fired plant in Indonesia earlier this week.

"The results were bland, but bland is good for International Power," Evolution Securities analyst Lakis Athanasiou said.

The company will pay a dividend of 8.28p per share, taking the full-year total to 12.53p, a 3pc rise on the previous year, to be paid on June 24.